Press Release Details

AES Reveals Advancion® 4 with First Commercial Deployment

New Node Architecture and Upgraded Controls Offer Highest Reliability
with Lowest Total Cost of Ownership for Utilities, Developers and Power
System Operators

ARLINGTON, Va.--(BUSINESS WIRE)--
The
AES Corporation (NYSE: AES) today announced the first deployment of
Advancion® 4, the next generation of battery-based energy
storage, at the Warrior Run facility in Cumberland, Maryland. Advancion
is a complete, battery-based alternative to peaking power plants that
provides a dependable, smart and cost-competitive means to modernize
power systems.

Advancion 4 is among the most proven energy storage platforms available,
resulting from AES’ more than eight years of commercial experience
operating grid-connected energy storage. This latest design includes
improvements in the architecture that provide the highest levels of
reliability, upgrades to the already proven controls platform, and a
modular design to drive down the upfront and on-going costsof
these advanced storage assets for customers.

“With the addition of the Warrior Run Advancion Energy Storage Array, we
now have 64 MW of interconnected energy storage in PJM,” said Ken
Zagzebski, President of AES’ US Strategic Business Unit. “We
continue to see energy storage as an important innovative technology for
serving our customers with safe, reliable, cost effective and emission
free power.”

“Advancion 4 was developed to address the challenges faced in owning and
operating the largest fleet of advanced battery-based energy storage
projects,” said John Zahurancik, President of AES Energy Storage. “AES
has a history of providing our customers with innovative solutions, and
Advancion 4 raises the bar, as it delivers the highest reliability, has
the lowest total cost of ownership, and is available to utilities,
developers and power system operators to own directly or through a
managed service contract.”

Key Features of Advancion 4 include:

Modular, Compact Advancion Array – The Advancion 4 Array
now has an industry-leading compact footprint and optimized design
that is five times denser than prior installations, further reducing
the total installed cost by requiring less space and balance of system
costs. Advancion 4 arrays are engineered to accommodate
interchangeable supplier components. These suppliers build to meet
Advancion design specifications to avoid costly, per project system
integration and are pre-qualified through AES’ Advancion Supplier
Certification Program. A select group of high quality component
suppliers have already been certified and the group represents more
than half of the global advanced battery production. The modular
architecture enables replacement and augmentation over the system life
using the best new technologies at the best future price.

Introducing the Advancion Node – The new Advancion Node is the
smaller, more manageable building block for Advancion Arrays. These
independent, modular units incorporate pre-certified batteries and
inverters, with AES controls, and are architected in a massively
parallel design – offering customers the highest level of reliability
and availability, similar to the world’s best datacenter systems. The
scalable design allows for standard configurations from 100 kW to
over 1,000 MW, and from 15-minutes of duration to over four hours
without any reengineering.

The Next Generation Advancion Digital Control System (DCS)– The addition of the node architecture to AES’ patented
control platform provides owners with unprecedented control of the
asset, to maximize revenue and reduce operating costs. Advancion-based
solutions now monitor, record and analyze thousands of individual
points within the system to tune performance – all protected within a
robust cybersecurity framework. For example, the Warrior Run
installation regularly measures and records nearly 80,000 separate
data points, representing more than two terabytes of data per year.
This node-level control makes it possible for parts of the same array,
or several distributed arrays, to do mix and match applications and to
load balance service requirements (e.g. regulation, reserves,
renewable ramping, energy delivery, voltage control, etc.), optimizing
the operation of the asset.

“The Advancion 4 energy storage solution is a unique combination of
market-tested controls and a massively parallel design architecture,
incorporating best in class technology components. Every aspect has been
developed to meet the needs of a long-term power asset owner-operator,”
said Brett Galura, Vice President of Solution Development for AES Energy
Storage. “We are especially pleased to work with our initial certified
suppliers, LG Chem and Parker Hannifin, in this first commercial
deployment of Advancion 4.”

The Warrior Run Advancion Energy Storage Array is the largest grid-scale
battery, and one of the largest green technology projects, in Maryland,
providing 10 MW of interconnected energy storage, equivalent to 20 MW of
flexible resource. Warrior Run will provide critical grid stability
services in the form of frequency regulation service to the PJM
Interconnection, which controls the power grid for more than 61 million
people.

AES has a total of 384 MW of interconnected energy storage, equivalent
to 768 MW of flexible resource, in operation, construction or late stage
development in six countries. AES has accumulated nearly three million
megawatt-hours of delivered service on its advanced energy storage
platform.

About AES Energy Storage Solutions

AES is a leader in commercial energy storage solutions, which improve
flexibility and reliability of the power system, and provide customers
with a complete alternative to traditional peaking power plants. The
company’s Advancion® 4.0 energy storage solution is
available to leading utilities, power markets, and independent power
producers, and AES can manage projects from concept to operation with
a market-proven solution. AES introduced the first grid-scale advanced
battery in commercial power market service in 2008 and operates the
largest fleet of battery-based storage assets in service today. The
company works with utility partners and other customers to deliver the
value of advanced storage in the US and around the world. To learn more,
please visit www.aesenergystorage.com
or @aes_es
on Twitter.

About AES

The AES Corporation (NYSE:AES) is a Fortune 200 global power company. We
provide affordable, sustainable energy to 18 countries through our
diverse portfolio of distribution businesses as well as thermal and
renewable generation facilities. Our workforce of 18,500 people is
committed to operational excellence and meeting the world’s changing
power needs. Our 2014 revenues were $17 billion and we own and
manage $39 billion in total assets. To learn more, please visit www.aes.com.
Follow AES on Twitter @TheAESCorp.

Safe Harbor Disclosure

This news release contains forward-looking statements within the meaning
of the Securities Act of 1933 and of the Securities Exchange Act of
1934. Such forward-looking statements include, but are not limited to,
those related to future earnings, growth and financial and operating
performance. Forward-looking statements are not intended to be a
guarantee of future results, but instead constitute AES’ current
expectations based on reasonable assumptions. Forecasted financial
information is based on certain material assumptions. These assumptions
include, but are not limited to, our accurate projections of future
interest rates, commodity price and foreign currency pricing, continued
normal levels of operating performance and electricity volume at our
distribution companies and operational performance at our generation
businesses consistent with historical levels, as well as achievements of
planned productivity improvements and incremental growth investments at
normalized investment levels and rates of return consistent with prior
experience.

Actual results could differ materially from those projected in our
forward-looking statements due to risks, uncertainties and other
factors. Important factors that could affect actual results are
discussed in AES’ filings with the Securities and Exchange Commission
(the “SEC”), including, but not limited to, the risks discussed under
Item 1A “Risk Factors” and Item 7: Management’s Discussion & Analysis in
AES’ 2014 Annual Report on Form 10-K and in subsequent reports filed
with the SEC. Readers are encouraged to read AES’ filings to learn more
about the risk factors associated with AES’ business. AES undertakes no
obligation to update or revise any forward-looking statements, whether
as a result of new information, future events or otherwise.

Any Stockholder who desires a copy of the Company’s 2014 Annual Report
on Form 10-K dated on or about February 25, 2015 with the SEC may obtain
a copy (excluding Exhibits) without charge by addressing a request to
the Office of the Corporate Secretary, The AES Corporation, 4300 Wilson
Boulevard, Arlington, Virginia 22203. Exhibits also may be requested,
but a charge equal to the reproduction cost thereof will be made. A copy
of the Form 10-K may be obtained by visiting the Company’s website at www.aes.com.